gallois wrote:
If you want one that’s what you pay
Obviously, but that doesn’t change the fact that the engine is worth only 1/10 of that. They could also sell it at 20k and still have a 50-100% profit. When you sell engines only every now and then, then you want as high a price as possible for it. Then when the customer is willing to pay, (or rather, doesn’t really have any other choice worth considering in this case) then no problem.
It is pretty obvious that the high prices in aviation are down to the monopolies created by certification which prevent competitors from entering the market, and which allows providers to unashamedly price-differentiate for essentially the same good.
The experimental market shows that it can all be done much more cheaply, and the only reason it does not completely displace the certified market are again artificial regulatory barriers that reduce utility (especially in Europe) and make getting a new one one less straightforward than a certified aircraft.
The obvious result is that in segments where these utility barriers do not matter (short-to medium distance national VFR in Europe) or don’t really exist (USA) the non-certified market is growing nicely while certified is in decline.
RobertL18C wrote:
Am estimating this route, including overhaul of accessories and installation is more like €60k a piece.
A TSIO-360 Continental is quite an expensive engine to overhaul given six cylinders versus four for the equivalent Lycoming, plus turbocharger. A little surfing around shows indicates all-in, accessories included overhauls reported in the region of $55K or €45K in the US, although Jewell Aviation indicates a price well below that for an overhaul without accessories, with new pistons in overhauled cylinders versus all new. Corona Engines shows a starting price of $32K, plus a few thousand more with new cylinders – which I think almost everybody would select. The additional $20K then covers new or overhauled accessories to reach $55K or €45K total.
There’s plenty of competition in the US aircraft engine market, both in terms of overhaul labor and PMA parts. This is true for both certified and non-certified engines. The issues in Europe are caused by (1) relative lack of local competition (2) relative lack of consumer knowledge on a foreign built product, and I think in some cases very importantly (3) local legal barriers to use of FAA-PMA parts and higher volume US overhaul shops. This tends to put buyer into the hands of the OEM, and inflated prices.
The factors above also show why engine types that aren’t routinely overhauled but are instead replaced at high prices have never been accepted by the US market.
There is another factor at play here and that’s once again Covid 19. The pandemic has made many people aware of the advantages of private aviation as mode of transport. Biz jet business is booming and many people who have a pilot’s license all of a sudden are being asked by their families to use their aircraft – previously seen as ’Dad’s Expensive Toy’ – for trips where it is feasible. Likewise, pilots who used to rent all of a sudden want to own for the same reason. Couple that with a relatively small pool of available airplanes that are in decent shape and you have the ingredients for rising prices. This in addition to what @Silvaire has already said in an earlier post.
absolutely correct in every point.
Add to that, the monopolies you mention have also stifled innovation, which particularly in aviaiton is a ruinous business due to certification hurdles as well as very low production numbers in comparison to e.g. car components. So we still are working with 1950 style engines and other technologies in many cases.
I want to meet the guy who can build an RV10 in 3 months, and more importantly buy him a beer.
gallois wrote:
And therefore buying a new aeroplane is not really a bad investment when compared with the amount of enjoyment you can get,
You’re comparing a finite amount with an infinite quantity 
True
Is there clear evidence that planes are selling at these higher prices, or could it be just sellers being obstinate? A lot of sellers have their heads in the clouds in normal times
@Peter I can assure you even hangar queens with pencil whipped annuals are selling at inflated prices, as I mentioned in the OP one example sold in a day. I expect the other example will stick but will sell for around $10k less in due course.
